According to law 228/2012, art. 1, comma 473 – the so-called “stability law” for 2013, until July 1 2013 is still possible even for non-resident tax entities like:
- non-resident companies,
- non-resident Trusts,
which hold participating interests of Italian companies and/or agricultural and building land in Italy to pay a substitute tax that allows the taxpayer to reduce or eliminate the tax burden deriving from gains taxable in Italy, due to the articles 68 and 69 of presidential decree n. 917/1986, as:
- the purchase cost of participating interests and similar holdings which are not quoted on regulated markets possessed at 1 January 2013. The revaluation is recognized upon payment of substitute tax on the appreciated value resulting from an appraisal whose shares are stepped up. The tax rate will be 4% for “qualified participation” (if a subject holds 20% of participation or more) and 2% for a “non-qualified participation” (if a subject holds less than 20% of participation).
- The purchase cost of agricultural and building land, that can be revalued with the same mechanism used for the revaluation of participating interests, except for the tax rate applicable which is 4% for both types of land.
The substitute tax can be paid in a one-off payment by July 1 2013 or in three equal annual installments – although an annual 3% interest charge will be due on the second and third installment.
For any further information about revaluation of participating interest and land for Trusts tax resident in Italy or non tax resident, please contact us.